Value Chain Renewable Energy

11/03/2021 | Oliver Stock, greenmatch AG

How do renewable energy plants actually come into being? Which actors are involved and how do they work together? We provide an overview of the renewable energy value chain:

A renewable energy project usually starts with a project developer, who begins by securing land, obtaining permits and expert opinions, and identifying a suitable plant for the respective site. Often, the project developer also takes care of the subsequent construction of the plant.

A so-called special purpose vehicle (SPV) is founded for the project. This is sold to an operator or investor at any time, sometimes even after the project rights have been secured. Depending on the time of sale, the entrepreneurial risks, e.g. in the construction of the project, are assumed.

Investors in the renewable energy value chain

In the beginning, these were often private investors. Over time, however, the projects became increasingly larger and correspondingly more expensive, which is why more and more citizen energy companies invested in renewables. Since the last 10 years, many municipal utilities and energy providers have now also invested in renewables. There are also more and more long-term investors from the institutional side, such as pension funds.

Long-term investors practice comprehensive stakeholder management

Asset management, i.e. the management of the already operating plants, often lies with the long-term investor. This is usually done in close cooperation with various consultants and partners for operations management, maintenance, electricity marketing, insurance, accounting & taxes.

Banks also play an important role as financing parties in this value chain. The bank usually takes on the largest share of the financing of renewable energy projects and accordingly also wants to be informed regularly and extensively about the current status of the financed plant.

Efficient cooperation as the basis for the accelerated energy transition

The networking of all parties in the value chain is increasingly taking place digitally as more and more actors recognise the advantages of efficient work processes. Particular attention must be paid to ensuring that all project participants work together as transparently and uniformly as possible. The heart of every project is ultimately the financial model, which is the central instrument for evaluation, negotiation and final decision-making over the entire project life cycle, i.e. from initial planning, through construction, the operating period, possibly via a repowering project, to the definitive end of operation and dismantling. greenmatch offers a standardised financial model for the entire life cycle of renewable energy projects, which makes an important contribution to increasing the efficiency of the work processes within the value chain. From the initial, rough project assessment, to the transaction plan, the updated plans from asset management and reporting to banks: greenmatch digitalises and simplifies the renewable energy value creation process.

More efficient ways of collaboration can accelerate investments in renewables, achieve the required construction targets and master the energy transition. Would you also like to work more efficiently and thus faster? Contact us!

This content may be of interest to you:

Success Story: Aventron AG - a showcase for sustainable growth

France remains highly interesting for wind project developers and investors

What is the difference between project finance and corporate finance?


About greenmatch

greenmatch is the leading web-based investment application for renewable energies. The highly flexible application models the complete financial project lifecycle of your wind, photovoltaic, hydro and biomass projects and optimizes your workflow. Its collaborative and integrative approach allows projects to be analyzed and executed more efficiently, comprehensibly and reliably. Our solutions empower project developers, investors and banks in making reliable decisions and in increasing the success of their transactions. greenmatch is an innovative model to limited traditional spreadsheet applications.

Request a trial

Do you like our blog?

Subscribe now